Philadelphia Office Sublet Space Declines as Tenants Return Less Space

Philadelphia Office Sublet Space Declines as Tenants Return Less Space

After seven years of rising office sublease availability, Philadelphia’s office market shows signs of recovery. By late 2024, the proportion of sublet space in the total available inventory dropped to 15.1%, down from a peak of 16.8% in mid-2023. This marks a shift after years of increasing sublet availability, indicating that the worst of the demand contraction may be over for Philadelphia’s office market. In the past year, 66 office sublet leases were signed, totaling 470,000 square feet, a figure similar to 2023, when 68 leases were recorded, covering 730,000 square feet.

*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Can Wells Fargo’s Former Market Street Office Building Survive and Adapt?

Can Wells Fargo's Former Market Street Office Building Survive and Adapt?

Just over a month ago, 401 Market St. appeared rock-solid on paper: the 484,643-square-foot building was fully leased, generating record revenue and strong cash flow, with a mortgage in good standing and over a year left before maturity. But in October, Wells Fargo’s lease on 349,770 square feet expired, dropping occupancy from 100% to 28% and pushing the property’s $52.4 million loan into special servicing. Now, with eight vacant floors, the building’s future is uncertain.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Goodwin Moves in as the First Tenant at 3025 JFK Ahead of Hiring Season

Goodwin Moves in as the First Tenant at 3025 JFK Ahead of Hiring Season

Boston-based megafirm Goodwin Procter has become the first tenant in Brandywine Realty Trust’s new office tower at 3025 JFK Blvd, moving in just over 18 months after entering the Philadelphia market. Last week, the firm took 31,000 square feet on a 12.5-year lease, occupying the 8th floor and part of the 7th, with space for 33 lawyers, 12 partners, and 25 professional staff in 70 individual offices. Co-managing partners Rachael Bushey and Barbara Shander anticipate expansion and have an option to lease the remainder of the 7th floor if needed.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

University of the Arts Real Estate Listed as ‘Generational Opportunity

University of the Arts Real Estate Listed as 'Generational Opportunity

The University of the Arts’ prime Center City real estate portfolio, totaling 760,000 square feet across nine buildings, has officially hit the market as part of the school’s Chapter 7 bankruptcy liquidation. Many of these historic properties are in high-profile locations around South Broad Street. Appointed by U.S. Bankruptcy Court in Delaware, JLL is marketing the portfolio for sale on behalf of the Chapter 7 Trustee, describing it as a “generational opportunity to reshape” Philadelphia’s central business district, according to JLL Senior Managing Director Jim Galbally.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Philadelphia REIT Poised for Post-Pandemic Office Leasing Rebound as Demand Picks Up

Philadelphia REIT Poised for Post-Pandemic Office Leasing Rebound as Demand Picks Up

Office landlords nationwide continue to face numerous challenges in the post-pandemic recovery, yet one Philadelphia developer is finding renewed optimism with a gradual rise in leasing activity. Brandywine Realty Trust, a Philadelphia-based REIT, reports increased touring and leasing across its U.S. office portfolio as companies regain confidence in expanding their real estate presence. CEO Jerry Sweeney expects this positive trend to persist, with the market on track to return to pre-2020 levels.

*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Building Complex Sold for $66.5 Million

Building Complex Sold for $66.5 Million

FLD Group of Eatontown, NJ, and the Adjmi family of New York have purchased the Plymouth Meeting Executive Campus from Brandywine Realty Trust for $65.5 million. The five-building, 521,288-square-foot Class A office complex sold at $126 per square foot, a notable discount from early 2023 estimates of over $100 million.

This acquisition follows the partnership’s $185 million purchase of the Bala Plaza complex last year. Unlike Bala Plaza, which is set for major redevelopment, the new owners have no plans to redevelop Plymouth Meeting Executive Campus, which was 77% occupied at the time of sale.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

New York Firm Takes Steps to Acquire Wanamaker Building

Wanamaker Building Acquired in Center City
After acquiring a significant portion of the debt on the historic Wanamaker building, TF Cornerstone is now attempting to take control of the Center City office space from its owner, Rubenstein Partners. With the New York-based developer now in possession of the loan, the foreclosure situation has changed. Instead of being managed by a commercial mortgage-backed securities (CMBS) trust focused on generating investor returns, the debt is now owned by a developer who may see greater potential in obtaining the building’s office floors.TF Cornerstone already holds ownership of the Wanamaker’s 435,000-square-foot retail space, including Macy’s, which it acquired for $40 million in 2019. The remaining 954,363 square feet—consisting of office space from floors 4 through 12, along with a 660-space underground parking garage—remains under Rubenstein’s ownership and serves as collateral for the firm’s $124 million mortgage.

Located at 1300 Market St., across from City Hall, the Wanamaker building highlights the struggles facing Philadelphia’s office market, which have worsened with the rise of remote and hybrid work models following the Covid-19 pandemic. The building was placed under receivership in September 2023, and its office occupancy has sharply declined from 96% in 2020 to just 23%, based on CMBS and receiver data.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

High Philly Office Rents May Be Covering

What higher office rents in Philadelphia may be concealing

The asking office rents in Philadelphia have remained resilient and even increased in recent years. However, effective rents, which account for inflation and concessions, paint a more complex picture. As a result, asking rents are no longer as reliable an indicator of occupancy costs and office market performance as they once were.

From 2010 to 2019, annual asking office rents in Philadelphia grew by an average of 1.6%, closely tracking the national inflation rate of 1.7%. But in recent years, inflationary pressures combined with reduced office demand have driven effective rent growth into negative territory.

For example, in the third quarter of 2024, average office asking rents rose by 0.4%. However, after adjusting for inflation, the average effective rent declined by 3%. When factoring in concessions and other incentives, the decline becomes even steeper.

*Article courtesy of Costar

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

New Details on Conversion Plans for the Bourse and 400 Market St.

New Details on Conversion Plans for the Bourse and 400 Market St.
Two months after acquiring the Bourse building and 400 Market St., developers Lubert-Adler Real Estate Funds and Keystone Development and Investment are moving forward with conversion plans. Initially undecided between apartments or a hotel for the 173,700-square-foot building at 400 Market St., a zoning permit issued on August 29 now allows for 176 residential units, indicating a multifamily direction. The permit outlines a residential lobby on the first floor and units on floors 2 through 12, while the building currently remains mostly vacant office space.
*Article courtesy of Philadelphia Business Journal
For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.

Ben Franklin Technology Partners Lists Longtime Navy Yard Building for Sale

Ben Franklin Technology Partners puts longtime Navy Yard building up for sale, eyes move
Ben Franklin Technology Partners of Southeastern Pennsylvania has listed its longtime headquarters in the Philadelphia Navy Yard for sale and plans to relocate.
The organization currently occupies about 12,000 square feet of the 30,000-square-foot building at 4801 S. Broad St., known as Building 100, with the remaining space leased to other tenants.
While the asking price has not been disclosed, the building, originally a Marine Corps barracks from the early 20th century, has an assessed value of $5.4 million, according to Philadelphia tax records.
*Article courtesy of Philadelphia Business Journal
For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier commercial real estate broker that provides a full range of commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale, www.wolfcre.com.